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India’s HPCL seeks for replacing Iran oil with Iraqi imports


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India’s HPCL seeks for replacing Iran oil with Iraqi imports

By S.Seal

14 Feb 2013 -- Updated 2/14/2013

The third-biggest purchaser of Iranian crude in the current economical year, HPCL, from India has got plans to slash its purchases and replace them with the Iraqi oil as sanctions on Tehran bite harder, a source with direct knowledge of the refiner’s plans said.

The move is in line with a broader goal fixed by India, the fourth largest oil importer across the world and Iran’s second-biggest client after China, for cutting deliveries from Tehran, and comes a s a tough new U.S. condition on funding such purchases has been imposed.

The state-run Hindustan Petroleum Corp. Ltd. (HPCL) had an annual contract with Iraq for purchasing 40,000 barrels per day (bpd) and another option for another 20,000 bpd for the year ending 31st March. It has raised about 44,000-46,000 bpd in the current year.

HPCL has goals to have a deal for only token volumes from Iran in the year, starting from April, the source said, partly because of growing concerns insurance for installations, including refineries, handling Iranian crude might be hard to find because of the tighter sanctions.

Volumes from Iran depend on the impact of sanctions. If the sanctions are eased or if the insurance matters get government’s helps, then Iran imports may go up. But at this moment no one wants to take any risk, the source said to the media, who is not authorized to speak to it.

HPCL wants to increase its increase its annual contract with the State Oil Marketing Organization (SOMO) of Iraq to about 60,000 bpd in the year starting in april from 45,000 bpd in the current year, the source added.

ALTERNATIVE SUPPLY SOURCES

The refiners of India have been compensating for lost Iranian volumes with crude from Iraq and Latin America. Iraq replaced Iran as the country’s No. 2 supplier after Saudi Arabia in the year that ended in March of 2012, as Tehran ceded a position it had held for five long years.

Sanctions on Tehran aimed at curbing its nuclear program have also prompted its other main Asian clients, such as; Japan, South Korean and China, for cutting imports and secure a waiver allows them continued access to the U.S. financial system. Iran says that its nuclear program is completely for peaceful purposes.

Refiners are already finding it difficult to import because of an EU ban on insuring the vessels carrying Iranian oil. In addition, under new sanctions of U.S. from 6th February, payments for Iranian crude must be held on a bank account in Indian in rupees, which are not freely traded on global markets.

India has aims to cut deliveries from Tehran by 10-15 % in the year beginning in april after the reductions of about 15 % in the current year.

The refiners of India, both private and the state-run, have already cut imports by about 19 % in April-December of 2012 to about 270,000 bpd. HPCL transported around 17 % of that, with fellow state-run refiner MRP: and privately-owned Essar the top purchasers.

Soruce: Reuters

http://www.iraqdirectory.com/en/2013/02/14/23166/indias-hpcl-seeks-for-replacing-iran-oil-with-iraqi-imports.aspx

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HUGE NEWS! The Iraqi economy is getting ready to explode. If the Iraqi allow One Man (Maliki) to keep them from such incredible levels of prosperity, shame on them. If they form a democratic state and share the wealth, there will be enough to enjoy for every living Iraqi.

Hello,

Please don't think me rude. Maliki is not the enemy of democracy in Iraq and sharing the wealth really isn't a democratic principle. You just have to look at the thiefdomes south of Iraq to understand that. Wealth is earned my friend, not given away. That is why your country is in such dire straights right now!

Maliki has consistantly been the man that has held Iraq together through the last chaotic decade. If he hadn't been as tough as he's been, the islamists and every other sectarian group would have torn Iraq in a million pieces by now. Democracy as we know it here in North America is a fragile thing on this planet. It seems the Anglosphere are the only places left on earth with any sense of true democracy left and even that's fleeting. See last line in paragraph above!

Maliki will see this through. His party is the only one that can unite the 50+ different political stripes found in Iraq's virgin democracy. None of the other leaders can do it. That's just the way it is. Maliki has more than a 70% approval rating. He is the man the people have chosen to take them to the promised land. PRAY for him!!

It's because of brave men like him that we will be able to make easy money on this investment!

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Hello,

Please don't think me rude. Maliki is not the enemy of democracy in Iraq and sharing the wealth really isn't a democratic principle. You just have to look at the thiefdomes south of Iraq to understand that. Wealth is earned my friend, not given away. That is why your country is in such dire straights right now!

Maliki has consistantly been the man that has held Iraq together through the last chaotic decade. If he hadn't been as tough as he's been, the islamists and every other sectarian group would have torn Iraq in a million pieces by now. Democracy as we know it here in North America is a fragile thing on this planet. It seems the Anglosphere are the only places left on earth with any sense of true democracy left and even that's fleeting. See last line in paragraph above!

Maliki will see this through. His party is the only one that can unite the 50+ different political stripes found in Iraq's virgin democracy. None of the other leaders can do it. That's just the way it is. Maliki has more than a 70% approval rating. He is the man the people have chosen to take them to the promised land. PRAY for him!!

It's because of brave men like him that we will be able to make easy money on this investment!

I don't mean to be rude either but I wholeheartedly disagree. Preventing your people from having basic necessities like running water and electricity is not "taking them to the promised land." Sacking the central bank and pull up with semi trucks to steal the people's money is not the promised land. Throwing innocent people into dungeons without due process of law is not a promised land that I want to visit. Allowing tankers full of food sit off of port and spoil while people starve does not sound promising to me.

I could go on and on but you get the picture. Men like Maliki couldn't care less about the people. They are what you call powermongers. Outside of Baghdad, Maliki has no approval rating. Sorry my friend but we will have to agree to disagree on this issue.

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